BPI Unit Investment Trust Funds (UITF) - No more Holding Period No more early redemption penalty

I am a Money Magnet! We are Money Magnets!

Good news Money Magnets!

BPI Asset Management has just announced that they are removing the holding period for all their Unit Investment Trust Funds (UITFs) starting August 1, 2012.  Instead of placing a holding period to encourage clients to commit, BPI is finding other ways to do so.  The change is retroactive and placements made months earlier will also no longer incur a penalty if you do decide to redeem them earlier.  While a short investing time frame is not very ideal for these types of funds, certainly, the freedom to redeem your placement without a penalty is very encouraging especially during times of financial emergencies.

Hurray for BPI! We hope other banks follow suit.

Changes in BPI Unit Investment Trust Funds effective August 1, 2012.

1. No more holding period.

2. Investing up to the last peso or dollar.  BPI Investment Funds is adopting the fractional unit accounting to allow you to maximize your investments.  There is no need to wait for your transaction advice to determine the actual settlement amount for your fund transactions.  You will now be able to purchase or sell units up to 4 decimal places.  (BPI UITFs didn't allow decimal places in the no. of units before.)

3. BPI Equity Fund is now known as BPI Equity Value Fund.  BPI shifted the fund's focus from its current very broad investment strategy to one that reflects primarily a value style bias to distinguish it from the other equity funds in the market.

source: BPI Asset Management

Now while the short holding period for BPI's Odyssey Funds have been removed as well.  We hope the next step they would take is to remove those ridiculously high Handling and Administrative Fees (what others may refer to as a Participation Fee, Joining Fee, etc.).

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